Perth property decline ‘close to bottom’ says Property Council of WA

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PERTH’S property slump is close to the bottom and gloomy market confidence is not an accurate reflection of long-term values, according to the Property Council of WA.

The council released the results of its ANZ/Property Council Survey exclusively to The Sunday Times this week, revealing that consumer confidence levels have dropped for the eighth consecutive quarter.

The survey of more than 400 Perth property professionals found a rise in industry confidence only in the commercial retail and retirement living sectors.

Confidence in residential property fell 24.8 per cent in the past 12 months.

With a rating of 100 considered “neutral” by the council, overall confidence in WA was down to 96, with the state going from the most confident in Australia to the least.

But Property Council WA executive director Joe Lenzo said despite the short-term struggles, the market was close to bottoming out.

Camera IconHouse capital growth expectations: Over the next 12 months in the state you primarily operate, how do you expect capital values to change for residential.Picture: Supplied

“Property is cyclical and nobody can call exactly when the bottom will come,” Mr Lenzo said.

“But it is true to say some of our residential members are starting to see investor bargain hunters.

“There are also some pockets, specifically around transport hubs or retail precincts, that are continuing to see good capital growth.”

PropertyESP director Samantha Reece agreed that despite talk of low confidence, there were still areas expected to perform well in the next 12 months.

“It is very dangerous when property predictors talk about the Perth market declining, because as with all generic statements, there are anomalies,” Ms Reece said

“Perth at the moment is undergoing an investment overload, with key projects such as Perth Stadium, the Perth Freight Link and Elizabeth Quay.”

Ray White chief executive Mark Whiteman said he believed there would be increased investor activity in 2016.

“When the share market is struggling, investors always move to property because bricks and mortar are seen as a safer bet ... I think we’ll see some of that happening,” Mr Whiteman said.

“Foreign investors are also continuing to take an interest in Perth. They have more of a global view and those looking at the bigger picture are able to see WA as a very stable bet.”

Camera IconMelinda Di Biase, who has just bought an apartment in Scarborough, said research gave her the confidence to go ahead with the purchase.Picture: News Limited, Matthew Poon